Can't pay anything to your creditors?
Sequestration is the Scottish Legal term for bankruptcy.
At Moneytalk Scotland we believe that declaring sequestration should be considered as a final option to reduce your existing debts and therefore should only be used as a last resort.
If you cannot therefore pay anything to your credit commitments any longer then Sequestration may well be for you. Alternatively, other solutions such as a Protected Trust Deed or Debt Management plan, offer different routes to help pay back your creditors without having to declare sequestration and will not have the same damaging affect on your credit history.
Advantages of Sequestration
- No more harassment or legal action can be taken by your creditors.
- No more further payments to your creditors but will have to pay any disposable income to your Trustee.
- Any benefits or pensions will continue to be your own.
- You will be discharged from your sequestration after 12 months and any remaining debts will be written off.
- You are guaranteed to know exactly when you will be debt free.
Disadvantages of Sequestration
- Any valuable assets, including endowment policies and your home may have to be released for the purpose of your creditors.
- Sequestration may hamper certain job opportunities and you wont be able to work as a company director etc.
- Your sequestration will be advertised in the Edinburgh Gazette.
- You will find difficulties in obtaining credit after being discharged from your sequestration and it can affect your credit rating for 6 years.
